Why does the Big 4 pay their consultants so much less? Is it because our margins are lower or because of the partner pension plan?

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Less than whom? Your rates are lower than MBB.

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MBB rates are much higher as well as the pedigree of their consultants. The work they do tends to be more important, very generally speaking. Expectations and stress also higher

likehelpful

More important? Yeah ok

So much less than who? If you stay at any company for longer than 2 years then you will make less than market. This doesn’t matter what company you are employed.

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D1, when I was at PwC, it was a set amount, with no bands. Every senior 1 gets paid the same base. Jumping around could land you more money if you jump up titles though.

I know MBB is similiar to PwC in the sense there is a set amount for each level

In comparison to T2 companies like OW, Kearney, etc my apologies

likehelpful

Revenue per FTE is generally higher at higher paying firms.

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Biggest difference is bill rates. Scope of work and "prestige/pedigree" are ancillary to bill rates.

Picking numbers out of thin air, if a SC level at D is being billed out at $175/hr vs $225/hr at a different firm, the other firm will likely pay that employee better than at D.

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My understanding is MBB projects are often twice the cost of a Big 4 proposal

You make more than fast food workers ;]

I'm assuming you mean than mbb?

Higher demand for their pedigree and skill set

PWC - you are the third person who has mentioned that compensation may be impacted by partner pension considerations.

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